The Budweiser Company started business on January 1, 2020. Budweiser manufactures a specialty honey beer, which it sells directly to state-owned distributors in Pennsylvania. Honey beer is produced and sold in six-packs, and in 2020, Budweiser produced more six-packs than it was able to sell. In addition to variable and fixed manufacturing overhead, Budweiser incurred direct materials costs of $880,000, direct manufacturing labor costs of $400,000, and fixed marketing and administrative costs of $295,000. For the year, Budweiser sold a total of 180,000 six-packs for a sales revenue of $2,250,000. Budweiser's CFO is convinced that the firm should use an actual costing system but is debating whether to follow variable or absorption costing. The controller notes that Budweiser's operating income for the year would be $438,000 under variable costing and $461,000 under absorption costing. Moreover, the ending finished goods inventory would be valued at $7.15 under variable costing and $8.30 under absorption costing. Budweiser incurs no variable nonmanufacturing expenses. 1. What is Budweiser's total contribution margin for 2020? 2. Budweiser incurs fixed manufacturing costs In addition to its fixed marketing and administrative costs. How much did Budweiser incur in fixed manufacturing costs in 2020? 3. How many six-packs did Budweiser produce in 2020? 4. How much in variable manufacturing overhead did Budweiser incur in 20207 5. For 2020, how much in total manufacturing overhead is expensed under variable costing, either through cost of goods sold or as a period expense? 6. In general, what are the advantages and disadvantages of using variable costing? 7. In general, what are the advantages and disadvantages of using absorption costing